Since you do not have much money you will need to do some DIY. Moving the toilet, sink and washer is out of the question. Remove the shelf and make a hamper/ bookshelf for storage. Would be nice if you had doors at the top to hide everything. Should be only 16 inches at the bottom and top half should be 12 inches deep. Clean up the wall with the outlets, using tape and drywall mud were the crack with the two pieces of wood is. The window I would frame two pieces of plexiglass with a semi-transparent design and mount it on the window ledge like sliding closet doors. Between the sink and toilet same plexi but all the way to the ceiling. Hopefully out of 2x2 if there is enough room. For the sink I would make a wood cover with cut out for the faucet to get a little counter space when not using the sink. Also paint one wall a different color for effect. Take the towel off the washer and add some shelving.

I feel like the art above the water cooler is too much to the right. I would move it a little more to the left. But if you have the ability, I would actually replace it will a picture or painting that is not two dimensional. In other words, a picture where your eye can wonder as if it was three dimension. Maybe a simple beach scene or mountain scene. Something that suggests space since the room is quite snug.

Thanks for your input. I am as happy as I can be regarding layout. Never having renovated, I just don't know where to start. If I go to a designer, am I limited to their suggestions/suppliers? Do they handle organising the tradespeople? If I visit with a bathroom showroom and really like a vanity or a particular type of shower head and tap handles, etc...when do I run it by a plumber as to suitability for the space/existing connections? Sorry I am sounding naive.... As for the laundry...I know there isn't much room to do anything different to it, apart from having some built in cabinetry put it. Currently as it stands, there is an existing sink/trough that sits in one of those old metal cabinets (fixed), a front loader washing machine and a free standing wardrobe/cupboard. Window and door to yard at one end. (Sorry no pics to hand)

As you haven't supplied any measurements, it's a little hard to gauge the correct size of the lounge etc, however, I would definitely take the dining table out of the lounge. Like oklouise, I would set that up in the kitchen area. I would opt to place it hard against the laundry wall and pull it out into the kitchen when it is required. I would also opt to have a narrow table that could be lifted to become fullsize. How friendly a terms are you on with your landlord? I would be putting a good case forward to him/her to install a heat-pump high on the wall above where the dining table is in your pic. There looks to be an area outside the WC wall to place the outside unit and it would be very easy to duct through to install the inside unit. While at it, get the heater taken out. Hopefully, the landlord would be able to see that a heat-pump would be cost effective whilst freeing up the corner for you. Do a little research beforehand. I would put the TV, and other lounge cabinetry on the white wall that backs onto the kitchen and if possible, around the corner slightly, where the heater is. That would free up the remainder of brick wall that has no window on it, for you to arrange your seating. As already suggested, I would also set your guitars up near the base of the stairs. Thoroughfare from the entrance, to the stairs, to the outside and to the kitchen and bathroom needs to be an uninterrupted flow.